Proposed: a tax break for big yachts

A proposed tax break for big yachts has once again sailing in the Legislature, with backers saying it’s needed to keep boat sales, repairs and other economic activity in Texas.

The Senate Subcommittee on Fiscal Affairs on Monday considered Senate Bill 862 by Sen. Larry Taylor, R-Friendswood, to cap the tax. Rep. John Davis, R-Houston, is carrying an identical measure, House Bill 3272.

Davis pushed similar legislation in the 2011 legislative session, but it foundered at a time when lawmakers faced with a predicted revenue shortfall were slashing billions of dollars from programs, including public education.

As filed, the legislation would cap the amount of boat tax at $15,625 per retail sale, the amount typically paid for a $250,000 yacht. Taylor has as substitute to change that to $25,000. The subcommittee held the bill while it awaits a new fiscal note on the change.

Backers emphasized, as they did in 2011, Florida’s decision to cap its sales and use tax at $18,000. They said that has prompted buyers to purchase and keep their boats in Florida.

The bill “is not about giving tax breaks to the rich. It is all about jobs and protecting our Texas economy,” Taylor said.